Roaming traffic contributes a significant percentage of an operator's revenue and even a better percentage of the operator's margin. With increasing competition and regulatory control, operators are being more pressured to increase their roaming revenue. Over the last few years, revenues to the network operators from home subscribers have consistently declined due to increased competition and resulting pricing pressures. On the other hand, revenues from roamers have consistently grown in the same period due to increased mobile penetration in local markets and an increase in travel.
As the global mobile roaming market business model is evolving, the industry understands the strategic importance of roaming to operator's revenues and profit margins and is adapting various newly proposed regulations. The operators understand that they must develop strategies for driving the number of roamers and roaming usage, while lowering tariff rates.
Amongst the roaming business, the average margins on inbound roaming revenue is around 80% and the average margins on outbound roaming revenue is around 20%. The key challenge lying before the operators is to maximize the outbound roaming revenues. While analyzing the outbound roaming revenues, it should be noted that on an average 40% of the outbound roaming revenues are contributed from Mobile Originated (MO) calls made by outbound roamers. Of these MO calls, almost 70% calls are back home and 10% are to other markets outside the current roaming destination of the subscribers. The revenue earned by the operator from these calls is minimal considering the revenue distribution between the current roaming network of the roamers and the destination network to where the call is made.
The roaming charges levied to a roamer for the outgoing calls made also constitute Inter Operator Tariffs and retail markups. The operators are increasingly coming under price pressure to offer better retail rates compared to wholesale tariff. The IOTs carry about 80% margin today whereas retail roaming charges carry only 20% margin. While the operators rely heavily on IOT discounting while setting up roaming agreements to maximize their roaming margins, the exception to the rule is outgoing international calls to other networks, the international outgoing calls continue to be expensive.
The key drivers constituting outbound roaming revenue are hence the Inter Operator Tariff, Termination Rates and Retail Markup. The operator can leverage the retail markup by selecting a “preferred partner” network that offers lesser IOT and lesser termination fees. There could also be an ecosystem of such preferred partner networks who offer each other discounted tariffs.
In accordance with the foregoing, there is a need in the art of a system, a method, for creating a solution that gives an operator the ways to leverage the ecosystem of preferred partner networks to enable a subscriber use a preferred network's IMSI while roaming, with the aim of maximizing the margin that accrues to the home operator. While the focus of the invention is on roaming, the methods can also be applied similarly to international calls too.